If you cannot have it removed by April 15, then it can stay in the plan but must still be reported as taxable wages using the method below since you will not receive a 1099-R. Since it was not removed before April 15 when you finally distribute it at retirement, it will be taxed again - that is the penalty for not timely removing it.
This is explained in the IRS pub (link below).
Excess 401(k) deferrals should be reported in:
(There are several screens to click through to get to the right place)
Miscellionious Income ->
Other Income not reported on a W-2 ->
Other wages (yes) ->
House Hold employee (Continue) ->
Sick Pay (Continue) ->
Other earned income (yes) (Includes excess salary deferrals)->
Source of income (other) ->
Any other income - enter the amount of the excess deferral and an explanation.
This will add the returned excess to your 2018 wages on line 1
For information see IRS Pub 525 page 10
https://www.irs.gov/pub/irs-pdf/p525.pdf
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
